In a surprising move for one of Asia's most well-respected hedge fund managers, Richland Capital Management has shuttered its hedge funds and may close its doors entirely.

The Hong Kong-based fund, which managed about US$100 million in two hedge funds, has liquidated the portfolios and wound down yesterday, Reuters reports. It is unclear why Richland moved to pull the plug on the funds; both had posted solid returns and sources told Reuters that neither fund faced major redemptions.

The fate of Richland's advisory business, which has about US$150 million in assets, remains up in the air; a source told Bloomberg News that no decision has been made about it.

Richland co-founders Alex Au and Eva Lo, HSBC Holdings and Credit Suisse veterans, would not comment on the move. The decision to close was made about a month ago.

Richland's Asia Absolute Return Fund has posted positive returns every year since its December 2006 debut, including a 5.3% gain in 2008, a difficult year for hedge funds, and a 14.1% jump last year. The fund was up 6% in the first quarter of this year.

The firm's Richland Emerging Opportunities Fund, which launched in 2007, has had more mixed results, with positive gains in only two of the last five years. But the fund has done extremely well lately, rising 13.1% last year and about 18% in the first quarter.